Comparing and Contrasting the Marketing Techniques of Tesco and Umbro:

by kassimgreeze (student)

M1 unit 3

In this report I am going to compare two successful organisations by comparing their marketing strategies. I am going to use the Ansoff matrix to show how both organisations differ within the growth strategies and this will also generate an insight on which customers both organisations look to attract.

Brands

The brands differ in many ways and this is mainly because they look to attract different markets. Tesco has a Brand name which is also the shop name and it’s the word “Tesco” but in bright red cap locks with light blue lines underlining each word separately. This brand goes on their food products and they have another brand “f&f” for their clothing products. Whereas Umbros brand is a diamond in a small diamond and the words “umbro” at the bottom, this is on all their clothing and products such as bags. When they sponsor a team they change their brand to just the two diamonds like for example Manchester citys football kit, which is shown above. Umbro only has one brand and this is because they only look to attract one type of market. Like Tesco, Umbro use their brands on websites, Bags and their products.

Tesco has 6,351 shops in total in the U.K and overseas, whereas Umbro has no shops but it sells its products to retail giants such as JJB and Sports direct. Tesco has 472,000 employees whereas Umbro has only 30,172 employees this is a huge difference as many of Umbro staff work in the head quarters the rest work in the factories. Tesco not only has many shops but it has headquarters and this is why they have many employees. As a result of all of this Tescos marketing and the way they do there marketing mix will be different mainly ...

This is a preview of the whole essay

This is the Anoffs Matrix growth strategy and businesses go through the strategies, whether it would be all of them or just one of them, they have to make sure they go through these strategies in order to grow in the business. Every business starts off with market penetration as this helps them keep existing customers loyal. Then a business may choose to attract new customers (markets) with their existing products, this is called market development as the business looks to attract new customers. The business may then want to make a new product for their existing customers; this is called product development as the business looks to sale different products to the same customers. When a business makes a new product to attract a new market this is called Diversification as the business will be taking a risk in selling new stock to new customers.

Market Penetration:

Tesco uses a club card to keep existing customers interested in their existing products and they also keep their existing customers happy by doing deals in the groceries department like for example selling two apples for the price of one. Whereas Umbro will keep their retail customers happy by doing deals like for example giving sports direct twenty shirts for the price of fifteen. Umbro can’t afford to have relationships with every consumer unlike Tesco so they build relationships with retailers like Sports direct and JD.

Market Development

Tesco have expanded through the years and have over three thousand stores in different parts of the world likewise Umbro has their logo in different parts of the world as the have collaborated with many different football teams overseas like for example the likes of Brazil and Sweden. Tesco on the other hand has stores all over the world.

Product Development:

Tesco would offer their customers 5p off every litre of petrol when they buy products from the store this is an example of Tesco offering new products to their existing customers likewise Umbro would offer football teams a free bag for every kit they buy.

Diversification:

Tesco have been through diversification as they currently own a petrol station and a mobile network whereas Umbro has not been through diversification as they only sale sport products but they have made football related pencil cases.

Relationship Marketing:

Tesco uses club card to make a relationship with the customer as they have millions of customers who shop every day and they want them to keep coming back and not go to their competitors. They designed the club card so that it generates loyal customers Whereas Umbro doesn’t deal with individual customers; they only deal with their retail customers. They also deal with football teams as they are a sports manufacture. Tesco make relationships with retail customers and offer them deals so they keep them coming back.

Conclusion:

It can be seen that both companies use similar marketing techniques but in different ways and they both use the Anoff matrix to grow even though they’re both very different companies.

Khamis Juma